Future contract is a contract that gives the contracting parties the obligation to buy or sell a standardized amount and a good, property or financial indicator in good standing at a price determined at an agreed date.
The point in this definition is that you have the obligation to get the contract value set by you at the end of the maturity. If there is more damage than the value of the deposit you deposit during your contract, you are asked to increase the amount of money you have deposited.
Who makes futures ?
- Investors who want to protect from deficiency
2.Speculators
3.Arbitrage makers
As an example of futures, you deposit the contract for a month and you remark your contract would be BTC 7.000. Every day that BTC is above 7000, you would get profit as the amount or vice versa.
The investor has estimated that the US Dollar exchange rate will rise on May 15, 2006 and has a long position of TL 1,5605 in the USD 2006 term contract. Table of Profit / Loss status
What we should focus here is that the values of each assets has been devalued when they started future contracts. Such as gold / uranium / corn. Assets can not be traded in future contracts. There are simply contracts.
In the CME futures, 1305 contracts have been signed and the btc value is 1305 * 5 = 6525 BTC (a contract can be up to 5 btc). 6525 BTC bitfinex is also being devalued by the whale at the time of its upturn, where it does not exceed the BTC contract value.
In this respect, conspiracy theories are being carried out. How small-volume counter-facts, which are really not traded, dominate the market. This is another flood topic.